20 – 22 West 25th Street: 7 Unit Investment Building in Charles Village

What Makes This Investment Building Special:

20 – 22 West 25th Street is a mixed-use investment property on the bustling 25th Street commercial corridor in Charles Village. These properties were fully rehabbed in the 1980’s. Fully occupied, turn-key, lead-free units will provide reliable cash flow from day one.

Investment Building Details:

Unit Mix:

• Three 2-Bedroom Apartments
• One 1-Bedroom Apartment
• Two Beauty Salons
• One Cafe

Fully rehabbed in the 1980’s, apartments feature full kitchens with 30″ electric ranges, built-in microwaves, dishwashers, and full-sized refrigerators. Laminate counters and a mix of laminate and wood cabinets are sturdy and easy to maintain. Bathrooms have modern vanities, fiberglass tubs, and vinyl tile floors. Tenants enjoy modern lighting, fashionable exposed brick walls, and bright living spaces with vinyl replacement windows. Central heat and air conditioning and in-suite clothes washers & dryers appeal to top-notch tenants and help obtain top-dollar rents for these spacious apartments.

The commercial spaces are home to long-term business tenants: two beauty salons occupy the first floor suites of each building and a cafe operates in the terrace level of 22 West 25th. Street-level retail spaces on 25th Street enjoy an abundance of walking traffic and the support of a strong business community.

Who Pays Which Utilities:

20 – 22 West 25th Street is an all-electric building with separate meters; so each tenant pays for their own power usage including cooking, heating, cooling, and hot water. Each unit has its own water heater, heat pump, and air conditioning. Currently the owner pays for the water bill and recaptures a portion via a bill-back to the commercial tenants. The owner pays for public service electric.

In addition to the water bill-back, the commercial tenants pay a portion of the property taxes and special benefits district surcharge, helping to increase the building’s profitability to the owner.

20 West 25th Street appears to have 400 amp electric service. 22 West 25th Street has 600 amp electric service. Observable plumbing supply lines are copper and drain lines are PVC. These buildings have flat built-up roofs. The rear asphalt parking lot is partially leased and could accommodate up to six cars.

What’s Great About Charles Village:

The Charles Village 25th Street corridor has been dubbed the “Black Wall Street of Baltimore” by the Baltimore Sun. Its numerous clothing retailers, art shops, and beauty stores has made it a fashion destination in Baltimore City. Commercial tenants enjoy the high visibility and walking traffic this location brings. Residential tenants enjoy the close proximity to various restaurants, art venues, and stores. Johns Hopkins, the city’s #1 employer, has its Homewood Campus just five blocks north. The central location in Baltimore gives residents a quick commute to downtown Baltimore or a short drive to I-83 for a drive to Baltimore County. The Maryland Avenue CycleTrack is one block away for bike commuters.

20 – 22 West 25th Street is designated a “Walker’s Paradise” with a Walk Score of 95; a Transit Score of 80; and a Bike Score of 85.

Investment Summary

$895,000
$127,857 Per Unit
$167 Per Sq. Ft. 
8.5 Times Actual Rents (GRM)
7.9 Times Market Rents (GRM)
8.37% Cap Rate
7.6% Projected Cash-on-Cash Return